Tata Motors has appealed to the Indian government to provide financial incentives for entry‑level electric vehicles (EVs) in the upcoming Union Budget 2026, citing rising costs that are making affordable EVs less competitive compared to petrol cars. The company’s Managing Director and CEO, Shailesh Chandra, highlighted that while recent reforms such as GST changes and lower interest rates have revived passenger car sales, entry‑level EVs continue to face cost pressures that could slow adoption.
Chandra explained that the recent reduction in GST for petrol cars has narrowed the price gap between conventional vehicles and electric models, putting entry‑level EVs at a disadvantage. He urged the government to consider targeted incentives to make these cars more affordable for the mass market.
In addition to entry‑level vehicles, Tata Motors is also seeking support for fleet EVs under the PM E‑DRIVE scheme. Currently, fleet electric cars—which make up around 7% of passenger vehicle sales but contribute one-third of total passenger kilometres travelled, are not covered under the scheme. Tata Motors argues that including fleet EVs would not only encourage adoption but also have a larger environmental impact, reducing emissions and dependence on imported fuel.
The company also flagged the impact of rising commodity prices and foreign exchange fluctuations, which have squeezed profit margins by an estimated 2%, largely absorbed by the company so far. Chandra indicated that Tata Motors may need to adjust vehicle prices in the coming months to manage costs, a trend reflected in recent price hikes by other automakers.
By seeking these measures, Tata Motors aims to ensure that electric vehicles remain competitive with petrol cars, particularly for price-sensitive buyers and fleet operators.